SAP Financial Accounting (SAP FI) Practice Exam

What is the first step in the down payment process?

1. Clearing of the down payment against the invoice

2. Down payment is received

3. Request for down payment

4. Issuing an invoice

The correct answer is: Request for down payment

The down payment process begins with a request for down payment. This step is critical as it formally initiates the transaction where a customer is asked to provide an advance payment before the final goods or services are delivered. This request creates a financial obligation for the customer and establishes a record in the accounting system that a down payment is needed. Once the request for a down payment is made, the subsequent steps can then follow, such as receiving the actual down payment from the customer, recording it in the system, and later clearing it against the final invoice when the goods or services are provided. Requesting the down payment is a necessary precursor to any further actions in the process, making it the foundational step in the down payment workflow.